S&P trims Telecom Italia

S&P said it lowered Telecom Italia’s issuer rating to BB from BB+.

“We expect adjusted leverage will continue to rise in 2021 to about 4.3x, from 4.2x in 2020. We now anticipate sharper organic revenue and EBITDA declines of 3% and 7% respectively versus the company's previous guidance of low single-digit revenue growth and a low- to mid-single-digit EBITDA decline. This is the result of continued fierce competition in the Italian mobile and fixed-line markets, as well as negative foreign exchange rate (FX) movements, which offset organic growth in Brazil,” S&P said in a press release.

For 2022, the agency said it sees stabilization in the Italian market, stronger euro-denominated contributions from Brazil, and lower capital expenditures that will support deleveraging.

The outlook is stable.

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